AGGLOMERATION AND TRADE REVISITED

By Gianmarco I. P. Ottaviano, Takatoshi Tabuchi, Jacques-Francois Tissse. World Scientific Studies in International Economics, 2002

1,161 citations recorded by the source corpus.

The purpose of this paper is twofold. First, we present an alternative model of agglomeration and trade that displays the main features of the recent economic geography literature while allowing for the derivation of analytical results by means of simple algebra. Second, we show how this framework can be used to permit (i) a welfare analysis of the agglomeration process, (ii) a full-fledged forward looking analysis of the role of history and expectations in the emergence of economic clusters, and (iii) a simple analysis of the impact of urban costs on the spatial distribution of economic activities.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/7000d88a835043f051cadae2016c848c9a3cb1fa

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

Citations in the corpus

The evolution of the world trade web: a weighted-network analysis (2010, background): “Consistently with some recent results in the ﬁeld of economic geography (see Ottaviano et al., 2002, p.411), we interpret our ﬁnding as suggesting that such a polarized structure is not necessarily the most eﬃcient outcome, and that a more balanced structure of trade relations would allow both…”
Markups, quality, and transport costs (2012, background): “16Even if it is not emphasized, this prediction is in models by Baldwin and Harrigan (2011), Ottaviano et al. (2002) or Hummels and Skiba (2004). reaction to distance may differ across firms.”
Bigger is Better: Market Size, Demand Elasticity and Innovation (2010, neutral): “Since this expression is less than one, (25) is less than one as well.”
The empirics of new economic geography (2010, neutral): “While initial research modeled the love of variety using a Constant Elasticity of Substitution (CES) functional form, recent research has also considered the quasilinear functional form following Ottaviano, Tabuchi, and Thisse (2002).”
Market Size, Trade, and Productivity (2005, neutral): “Given (21), the free entry condition can be re-written:”
Cities and product variety: evidence from restaurants (2015, background): “More recent work, such as Ottaviano et al. (2002) and Behrens and Robert-Nicoud (2014), incorporates both increasing returns and within city transportation costs but the models have a broader focus, and are thus more complex, than what I present here.”
Gravity Equations: Workhorse,Toolkit, and Cookbook (2013, positive): “Both the linear demand system used by Ottaviano et al. (2002) or the translog form used by Feenstra (2003) and Novy (2013) are relatively straightforward to estimate despite not being multiplicatively separable in the Si, Mn and φni terms, and therefore not obeying definition 1.5 Thus the main…”
Agglomeration and Regional Growth (2003, neutral): “Krugman (1991), Krugman and Venables (1995), Ottaviano, Tabuchi and Thisse (2002) and Puga (1999).”